页面打开中,请稍候...
www.Gzu521.com
| 贵 州 学 习 网 |
|
5. (6 points) noc has just established a global subsidiary. employees of the subsidiary include transferred noc employees and third-country nationals. (a) explain the issues affecting a retirement benefit policy for permanent and temporary transfers between countries. (b) assuming that global comparability of retirement benefits is a corporate objective, describe the issues noc must consider. course 8: fall 2003 -6- go to next page retirement benefits, comprehensive segment – canada morning session all questions pertain to the case study 6. (10 points) noc’s ceo has proposed an asset mix policy for the full-time hourly union pension plan to achieve the following objectives: •minimize short-term volatility of the company’s pension expense. •minimize the long-term cost of the plan. proposed asset mix policy domestic equities (mostly oil companies) 60% international equities 5% domestic fixed income (short & medium-term treasuries) 20% real estate 15% (a) critique the proposed asset mix policy. (b) you are going to perform an asset liability study for the noc full-time hourly union pension plan. describe the inputs you would need and the process you would undertake. (c) explain how the output of your asset liability study would be used to recommend and justify an asset mix policy to the ceo. course 8: fall 2003 -7- go to next page retirement benefits, comprehensive segment – canada afternoon session all questions pertain to the case study 7. (8 points) noc is acquiring techco, a priva te company in the country of xanadu. xanadu has similar tax and pension legislation rules to gevrey, with the following exceptions: •employees can contribute up to $5,000 per year to a db erp and $5,000 per year to a dc erp. •employee contributions are tax-deductible to the individual. •investment earnings on the employee contributions are not taxable until withdrawn. •there are no ppas. xanadu sponsors the following government-provided retirement income program: •both employees and employers contribute 5% of pay every year. •the pension provided at retirement is equal to 50% of the best 3-year average earnings, provided the contributory period was at least 30 years. a proportionately reduced benefit is provided if less than 30 years of contributions were made to the program. •eligibility for a pension is age 62. •the pension is reduced by 5% per year that the retirement age precedes age 67. techco did not provide either a db erp or a dc erp. (a) evaluate the appropriateness of noc establishing an erp for the salaried employees of techco. (b) noc’s vp of human resources is proposing a plan with the same provisions as the full-time salaried pension plan. critique this proposal. (c) recommend an alternative program for the salaried employees of techco. justify your recommendation. **end of examination** morning session course 8: fall 2003 -8- go to next page retirement benefits, comprehensive segment – canada afternoon session **beginning of examination 8** comprehensive segment – canada afternoon session all questions pertain to the case study 8. (8 points) noc is considering laying off part of its union workforce to reduce costs. in order to avoid layoffs, the union has agreed to discuss changes to the full-time hourly union pension plan. noc has proposed to freeze accruals in the pension plan as of september 30, 2003. under the frozen plan, benefits would be determined for all active participants based on service earned through september 30, 2003, and no future benefits would accrue. the union offers a counter proposal to reduce future accruals as of january 1, 2004. under the union’s proposal, benefits would accrue to december 31, 2003 at the $75 rate. after december 31, 2003, benefits would accrue at a rate of $50 per year of service earned after december 31, 2003. (a) estimate the change in noc’s 2003 accounting expense if noc’s proposal is adopted. (b) if the union proposal is adopted, estimate the change in the 2003 and the 2004 accounting expense. (c) describe the effect of noc’s proposal from both the employee and the employer perspectives. course 8: fall 2003 -9- go to next page retirement benefits, comprehensive segment – canada afternoon session all questions pertain to the case study   |
责任编辑：gzu521
当前位置:
